Your mortgage loan officer or financial planner will tell you that saving the amount of mortgage interest paid to a lender over time is a critical component of your financial future. Initially, that means getting the lowest mortgage rate possible. A lower mortgage rate will lower your payment with less interest. Yet another important factor is just as important as the interest rate on your loan—the loan term.

Easily the most popular loan term in today’s market is the 30 year mortgage. This term offers low rates as well as the lowest monthly payment over the life of the loan. Yet because the loan is spread out over 30 years, that interest begins to pile up. To counter this long term interest, borrowers look to the 15 year loan. The mortgage interest rates on 15 year loans are lower compared to the 30 year program but the monthly payments are much higher. How much so? Let’s look at a $300,000 mortgage using a 3.75% interest rate on a 30 year fixed rate product, and a 3.50% interest rate on a 15 year fixed rate product:

Mortgage Product Comparison

Term Payment
30 Years $1,389
15 Years $2,181





Over the course of each loan, how ...

Is a Cash Out Refinance In Your Future?

Feb 3
Category | Blog

The New Year is beginning to fade. Time really seems to fly from the period right around Thanksgiving through the first of the year and as people get back into the groove they may also have at a new stack of bills. The holidays are full of gift giving, celebrations and travel but there is a cost to it and consumers know full well that fact. The convenience of credit cards can sometimes lead it to more spending than planned. Now hold that thought for a moment.

Have you looked at interest rates lately? 30 year fixed rates are at levels not seen in nearly two years and as people celebrated over the holidays, rates have quietly drifted lower. Okay, so what about the interest rate on your credit card? Thinking of tapping into your home equity to pay off those bills? You really have three choices:

  • Make a payment to the credit card companies
  • Take out  a home equity loan to pay off the credit card balances, or
  • Refinance your first mortgage, lowering the rate and paying off the credit accounts

Paying off a credit card balance over time means paying so much more in interest compared to other options. If you decide to pay off the balance entirely, perhaps those funds aren’t readily available and if they are maybe there are other more pressing items to pay. So, you decide to pay the minimum plus a little more and revisit the credit card balances next month. Again.

If you currently have a home equity line of credit, that’s certainly an option. The ...

NJ Lenders Corp. prides itself on educating our customers and the general public about all things mortgage-related. Recently, there has been a lot of buzz about PMI, or Private Mortgage Insurance, and whether or not it is really necessary. In New York and New Jersey, homebuyers faced with some of the highest real estate costs and taxes in the nation are particularly curious about PMI and about potential ways to avoid it altogether.  At NJ Lenders Corp., we don’t think there is such a thing as “TMI” (Too Much Information) on PMI, if it can positively affect your bottom line. This article will explain what PMI is and outline some strategies to help you avoid paying it.

What is PMI?

If you are buying a home and do not have enough money saved for a 20% down payment, most lenders will ask you to secure Private Mortgage Insurance. In the event that you stop paying your mortgage, the lender is then able to recover any potential losses from the PMI Company. In other words, you pay the PMI, but the lender is its beneficiary.

PMI fees vary depending on the size of the down payment and the size of the loan. They typically range between 0.5% and 1% of the original loan amount per year. Let’s look at an example. If you buy a $200,000 house and make a 10% down payment, you are borrowing $180,000. Let’s assume that the mortgage insurer charges you an annual premium of 0.75%. Your annual PMI premium, then, would be 0.75% of $180,000, or $1,350. This ...

There are many reasons why New Jersey is lacking quality inventory of homes.  In this article we will outline a number of causes that are having a negative impact in the market.

First, with historically low interest rates, many current New Jersey homeowners have recently refinanced. Therefore, it is more practical for them to stay in their existing home, rather than consider a move to a new home and pay a higher rate on a new mortgage. This is just one factor resulting in less new inventory for potential homebuyers in New Jersey.

Another issue impacting inventory is that more than 60% of those looking to purchase a home must sell an existing one first. Mortgage lending standards are tighter for those who must carry two mortgages, making it increasingly difficult to qualify for a mortgage while owning two homes.

There are also influences from trends affecting new, younger buyers, that keep them from being able to move out on their own and purchase or rent a home. Unemployment rates, even among this younger population, including recent college graduates, delay their parents downsizing from their existing family home.  These Baby Boomers who had planned to move to a smaller home, or another state, have been unable to do so.  So these adult children often move back home after college, due to joblessness, divorce, or the ...

While it's no surprise that credit scores can vary from report to report, the shock can come when it directly affects you. A little research can go a long way. It can also make the difference in getting the mortgage rate you want and the one you get stuck with. When seeking out a credit score for a home mortgage, equip yourself with some facts. Consider these points as you start out.

When you get a free credit score, it is usually only one bureau

Free is good. Everybody loves free. But in the case of getting your credit score, free is also incomplete. If the provider of this free score only uses one report, you are seeing a very incomplete picture. Mortgage applications require three scores, so the other two scores could be very different. If these overlooked scores are not as good (or worse, contain negative information) you could be stuck with a rate that negatively impacts you -- and your wallet. 

From our various locations in New Jersey -- where we service clients in the high stakes New Jersey and New York mortgage markets -- every single point helps.

So do your due diligence and prepare yourself accordingly.

Caution! It's not the same

Not only is the online free credit score incomplete, the quality of the score is also lacking.

Vic Melillo, Credit Master at

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